Showing posts with label Dharmendra Pradhan. Show all posts
Showing posts with label Dharmendra Pradhan. Show all posts

Thursday, July 13, 2017

Chatting to Bob Dudley & host broadcaster TRT

As the 22nd WPC approaches its end, more interesting soundbites have emerged, especially from International Energy Agency (IEA) Executive Director Dr Fatih Birol who has been on several panels and forums, energised no doubt in his hometown of Istanbul.

According to Birol, despite all the noise about electric cars, automobiles aren’t the primary drivers for oil demand. “That comes from trucks, aviation and petrochemicals. So even if one in every two cars is an electric vehicle, oil demand will still grow.”

On average, most analysts, including many at the IEA, expect that global demand growth to be in the region of 1.2 to 1.3 million barrels per day (bpd). That’s hardly the stuff of dreams for those placing long bets on the crude stuff. 

Getting away from Birol, the Oilholic also had the pleasure of spending a few minutes in the company of BP boss Bob Dudley, who said the oil giant was preparing for a $30 per barrel oil price breakeven. Here’s one’s exclusive interview for IBTimes UK

In another major development, the geopolitical significance of which cannot be understated, India has imported its first ever consignment of US crude oil. For a country largely reliant on Middle Eastern oil, the US is now an avenue.

The Oilholic is reliably informed the consignment has been drawn from conventional sources, but to quote Indian Oil Minister Dharmendra Pradhan - New Delhi would not be averse to importing “shale oil in the future.”

Finally, before one takes your leave and calls time on the 22nd WPC, it was a pleasure appearing on host broadcaster TRT World, and discussing the crude state of affairs on the channel’s Money Talks programme. Here’s a clip dear readers, but that’s all from Istanbul! Keep reading, keep it ‘crude’!

To follow The Oilholic on Twitter click here.
To follow The Oilholic on Google+ click here.
To follow The Oilholic on IBTimes UK click here.
To follow The Oilholic on Forbes click here.

© Gaurav Sharma 2017. Photo: The Oilholic (right) on TRT World’s Money Talks with Azhar Sukri © Gaurav Sharma 2017.

Wednesday, July 12, 2017

Two WPC days, umpteen 'crude' angles

In typical fashion, two packed days have zipped by at the 22nd World Petroleum Congress in Istanbul, Turkey and the Oilholic could count at least a dozen talking points, few of which are duly noted here. 

Let's start with Total's boss Patrick Poyanne, whom this blogger has not had the pleasure of listening to since the International Petroleum Week in London.

Pouyanne told WPC delegates that Brazil's mammoth offshore deepwater fields could one fine day be "as profitable as US shale". That's providing operators and consortium partners keep a tight handle on break-even costs.

"Maybe they are long-cycle, and shale is short-cycle, but in terms of profitability, in the giant deepwater fields it is easy to make money, provided a handle is kept on the break-even," he quipped. 

Another industry captain - Shell's CEO Ben van Beurden - correctly opined that discussions over the global energy mix and the transition to a low carbon global economy should not only focus on Western perspectives.

van Beurden also said energy transition is regularly portrayed in terms that compare it to a revolution; a moment in time when everything changes. "In truth, different countries and different sectors will advance at different speeds. In truth, we are not talking about a moment in time, but of change that will take place over generations." (For IBTimes UK report, click here)

Meanwhile, murmurs in the Congress background suggest Abu Dhabi National Oil Company may beat Saudi Aramco to a mega stock floatation. The planned IPO would be of ADNOC's distribution business, which manages 460 petrol stations and accompanying convenience stores across the United Arab Emirates.

According to sources, ADNOC's expected valuation for the business is around $14bn, which if realised could net it $1.5bn to $2bn via a 10-15% equity float which many say might be on the immediate horizon. Still early days though. (Read all about it here).

Finally before one takes your leave, it seems 'Crude' history has been made, with India poised to buy its first consignment of US oil. Indian Minister Dharmendra Pradhan told the Oilholic the crude sourced is conventional, but New Delhi might consider going for shale oil too in the future. Here is one's full report for IBTimes UK. Well that's all for the moment from Istanbul folks! Keep reading, keep it crude!

To follow The Oilholic on Twitter click here.
To follow The Oilholic on Google+ click here.
To follow The Oilholic on IBTimes UK click here.
To follow The Oilholic on Forbes click here.

© Gaurav Sharma 2017. Photo: Front entrance garden of the Istanbul Congress Center, Turkey - venue of the 22nd World Petroleum Congress © Gaurav Sharma 2017.

Tuesday, March 07, 2017

Back in Houston town for CERAWeek

The Oilholic is back in Houston, Texas for the 2017 instalment of IHS CERAWeek; one of the world’s largest gatherings of oil and gas policymakers, executives, movers and shakers alike.

An early start to an empty lobby (see left) and a late finish (as yet to follow) are all but guaranteed, and it’s only day one! 

The morning began with the International Energy Agency’s Executive Director Fatih Birol telling us another supply glut courtesy of rising US shale production was around the corner (report here). 

Then Indian Petroleum Minister Dharmendra Pradhan told scribes it was an oil buyers’ market as far as he was concerned, and that he is not averse to the idea of India buying crude from the US, now that Washington permit unrefined exports. Take that Opec! (More here).

By the way, a rather large Russian delegation appears to be in town, led by none other than energy minister Alexander Novak himself. When put on the spot by IHS CERA Vice Chairman Daniel Yergin, the Kremlin’s top man at CERAWeek said Russia will achieve a 300,000 barrels per day (bpd) production cut by the end of April. 

However, Novak said Russia will not decide on extending its production cut deal with Opec and 10 other non-Opec producers until the middle of 2017.

Late afternoon, ExxonMobil’s relatively new boss Darren Woods put in a refined performance unveiling a $20 billion downstream investment plan, which is sure to delight President Donald Trump. (More here)

That’s all from CERAWeek for the moment folks. Keep reading, keep it ‘crude’! 

To follow The Oilholic on Twitter click here.
To follow The Oilholic on Google+ click here.
To follow The Oilholic on IBTimes UK click here.
To follow The Oilholic on Forbes click here.

© Gaurav Sharma 2017. Photo: Entrance to IHS CERAWeek 2017 in Houston, Texas, USA © Gaurav Sharma.

Thursday, June 19, 2014

Iran O&G projects: A possible market comeback?

The Oilholic has been tweeting like mad from the 21st World Petroleum Congress over a hectic few days, though not all of the chirps are 'crude' of course.

Away from tweeting today, one found an opening to talk to members of the Iranian delegation who are using the Congress – their first since a partial lifting of sanctions – to declare the country's oil & gas sector open for business. The aim is to bring in more foreign investment and technological know-how, in wake of securing limited international sanctions relief from a November interim agreement to temporarily curb its nuclear activities.

Setting out its stall, the National Iranian Oil Company (NIOC) has floated the idea of 41 projects aimed at the development of oil & gas fields, establishment of natural gas liquid (NGL) plants, and the collection of ancillary petroleum gas at oilfields. The latter project slant is of great significance, as the Iranians usually burned off the gas in the past due to lack of infrastructure, rather than tap it as an additional resource.

The total valuation is in the region of US$100 billion, as confirmed by an NIOC official and a new contractual framework is on the table. According an official, under the terms of the previous buy-back contracts, the said contractors were a set price for oil & gas produced. Under the planned new system (the Iranian Petroleum Contract), state-run energy companies will establish joint ventures with their international counterparts, which will be paid with a share of the output.

All sounds clear enough, but unless the sanctions are lifted further, one doubts how international players can circumvent the existing sanctions and proceed anyway. Nonetheless, there seems to be a very relaxed atmosphere within the Iranian camp here in Moscow, who are at the forefront of making their country's pitch. And there is some bluster too as usual.

Iranian Oil Minister Bijan Namdar Zanganeh has said that the country's oil industry would go ahead with the projects, with or without sanctions, which have "not hindered progress." The Oilholic doubts that, but agrees with Zanganeh's assertion, back in April, that in order for Iran to revise how it regulates oil & gas contracts further, sanctions must be lifted more meaningfully.

Companies are still queuing up though led by CNPC, Gazprom and Petronas. The Oilholic can confirm Eni and Total are also in talks with Iran, according to a senior source. However, US oil & gas majors are largely staying away and BP is understood to be "monitoring the situation" with nothing concrete having materialised so far. With proven reserves in the region of 360 billion barrels of oil (boe) equivalent, there is a lot at stake, so watch this space!

Among what the country holds, the Northern Iranian states should be pretty interesting, according to Farrokh Kamali, a recently retired technical advisor to the Iran LNG Company. In 2011 and 2012, Iran found potential for 10 billion barrels of crude and 5 trillion cubic feet (tcf) of gas in its territory of the Caspian Sea. Kamali describes the findings as "economically viable".

Meanwhile, the Indians are making waves too. People turned up in their hordes to hear what the newly appointed Minister of State for Petroleum and Natural Gas Dharmendra Pradhan had to say about the Narendra Modi government's planned revision to India's highly political subsidy system, which if significantly altered, could aid investment in the country's oil & gas sector.

First off, Pradhan stressed on the ties and friendship between Delhi and Moscow. Secondly, he noted that energy policy must serve broader economic growth and its benefits should not exclude "the poor and the vulnerable." Thirdly, he noted that the oil & gas industry's efforts must focus on promoting fiscal and regulatory regimes that are stable and equitable to both investors and owners of natural resources.

Fourthly, he called for enhancing technological collaboration across the value chain since the nations have to "delve deeper" and explore in more difficult areas for hydrocarbons. And then he left! Some were disappointed with Pradhan, but the Oilholic wasn't. A new minister, in a new government was hardly going to go down the path of saying something beyond the box – that's India, correction politics, for you.

Sticking with India, a Bharat Petroleum official gave fascinating insight into how the company is improving surveillance of its vast pipeline network. Manoj Kumar Jadhaw, manager of pipelines at the Indian state-owned company, said they are trialling a GPS tracking system for their 'line walkers' to ensure the walkers are actually walking and monitoring (and not skiving) along the length of the pipeline to prevent resource tapping or pilferage, a common occurrence in that part of the world.

Initial feedback has been great but the project only extends to 300km. When you are talking 40,000km of pipelines, there's some way to go yet! That's all from Moscow for the moment folks! Keep reading, keep it 'crude'!

To follow The Oilholic on Twitter click here
To follow The Oilholic on Google+ click here
To email: gaurav.sharma@oilholicssynonymous.com

© Gaurav Sharma 2014. Photo: National Iranian Oil Company enclosure at 21st World Petroleum Congress, Moscow, Russia. © Gaurav Sharma, June 2014.